Index rises as market leader PLDT reports record results

Share prices closed up 0.83 percent yesterday, hitting five-month highs after market-leader Philippine Long Distance Telephone Co. (PLDT) posted record results which helped confirm the recent more positive tone, dealers said.

The Philippine Stock Exchange composite index rose 16.88 points to 2,046.93 after trading between 2,026.31 and 2,049.54. This was the best finish since 2,051.04 on June 6. Turnover was P359 million shares worth P1.04 billion.

The broader all-shares index advanced 8.37 points to 1,238.25.

Gainers led losers 45 to 26 and 46 stocks unchanged.

"Undoubtedly, today’s rally was driven by PLDT," said Astro del Castillo of First Grade Holdings.

PLDT closed up P60 to P1,780 after hitting a record high of P1,790 immediately after the company unveiled its results during the last hour of trading.

The country’s largest telecommunication firm reported record net profit of P25 billion for the first nine months, up 13 percent from a year earlier, on the back of a strong mobile phone business.

"I think the stock reaching the P2,000 level is just a ring away. It’s a clear signal from here on," del Castillo said.

He said PLDT is highly likely to achieve its net profit target for the full year of P29 billion because the last three months is typically the strongest season for telecommunication firms.

PLDT’s result sparked hopes other companies will report upbeat earnings.

Jonathan Ravelas of Banco de Oro said the market may need to consolidate before staging another rally, having gained six percent after the government started collecting from Nov. 1 an expanded sales tax to cut its massive budget deficit.

PLDT unit Pilipino Telephone advanced 15 centavos to P3.25.

Bank of the Philippine Islands gained P1.50 to P59, while parent Ayala Corp. ended unchanged at P310. Ayala Land fell 10 centavos to P8.90.

San Miguel A was flat at P65 and San Miguel B retreated 50 centavos to P89.50.

"The earnings results of PLDT basically pulled up the market," said DA Market Securities president Nestor Aguila.

Pilipino Telephone rose 4.8 percent to P3.25, after the PLDT cellular affiliate said Monday its net profit in the first nine months rose sevenfold to P6.94 billion on higher revenue, reduced expenses, foreign exchange and financing gains.

Petron was another active stock, rising 2.7 percent to P3.75 on expectations the country’s largest oil refiner will post strong third-quarter results.

The commercial-industrial, all shares, banks and financial services, and oil subindexes advanced, while the property, and mining subindicators retreated. – AFP, AP